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Bullet 1 -- Do experts in the field agree that the science is possible, or do you have to invent a “new physics” to make it happen? Can you/have you put together a breadboard that demonstrates the device is likely to work as advertised? Bullet 2 -- Can you at least show theoretical studies that indicate the technology will be better than what already exists? The technology “S” curve may help. Bullet 3 -- Can you estimate how long the development is likely to take, and how much it will cost? Most radically new ideas take longer and cost more than expected. Are there competitors who have a significant head start? Bullet 4 -- Technology/product platforms have a greater chance of developing into a large multi-product businesses and thus are favored by investors. Bullet 5 -- Your idea may be wonderful but if you need “other stuff” to build it or make it work you may have a big problem. For example: Even if you have a way to significantly reduce the cost/hp of auto fuel cells, unless someone is developing the hydrogen fueling station infrastructure you probably won’t have much of a business. Bullet 6 -- How far can you/your existing team take the development? Can you hire others to help? Would it be better to outsource the development? Do you need/can you find a strategic partner?

Hawkins kaiser module_4

3.
Remind Yourself What Your Testing <ul><li>Product Benefit: Have I effectively addressed who wants or needs it and the signaling cues? </li></ul><ul><li>Consumption Chain: Have I effectively addressed the full consumption chain? </li></ul><ul><li>Competitive Response: How did they respond? </li></ul><ul><li>Price: Is the price achieving the targeted forecasts and profits? </li></ul><ul><li>Promotion: Is the packaging and merchandising having the desired effect? </li></ul>Should I adjust, change direction, or get out?

4.
Testing Benefit Alignment Business Success Matching a company's capabilities with the wants of customers and consumers in order to achieve the objectives of both parties. Source: Marketing Plans by Malcolm McDonald and Marketing Management by Kotler. After all, you’re testing how well your benefit aligns with the consumer’s needs. Product Features (Benefits) Consumer Segment Needs Alignment

5.
Take Their “Pain” Away <ul><li>The 3 Q’s </li></ul>Your Product/ Service Your End Consumer Intermediary (Customers) -What do they want? -Why do they want it? -How do they know they got it?

6.
What Do Your Consumers Really Want? <ul><li>Remember, they don’t buy features, they buy benefits! </li></ul><ul><ul><li>Don’t fall into the trap of talking about features, rather talk about what they mean. </li></ul></ul><ul><li>Identify the feature, then ask two questions: </li></ul><ul><ul><li>Which means what? </li></ul></ul><ul><ul><ul><li>Bug stops in its tracks </li></ul></ul></ul><ul><ul><li>So what? </li></ul></ul><ul><ul><ul><li>Kills bugs while in sight </li></ul></ul></ul>

7.
<ul><li>Can you make money at it? </li></ul><ul><li>What are they willing to pay? </li></ul><ul><li>Is the price achieving the targeted forecasts and profits? </li></ul>

8.
Realistic Market Pricing <ul><li>Start by looking at “similar to” products in the market. </li></ul><ul><ul><li>Compare benefits and features </li></ul></ul>What will your competitors do? How low can you go and still make money? <ul><li>Understand the profit desires of your intermediaries. </li></ul><ul><li>Develop pricing from the top-down, not bottom-up. </li></ul>

9.
Keep Your Mind Right While Testing <ul><li>Your are in the business of offering a sustainable (product or service) benefit to a targeted audience, while helping others make money as you do. </li></ul>

11.
Have A Plan And Stick To It <ul><li>Once you know what you’re “really selling” and to whom…follow your plan, but be ready to adjust. </li></ul><ul><li>Set metrics to evaluate, which will define </li></ul><ul><ul><li>Who you are </li></ul></ul><ul><ul><li>Where you are </li></ul></ul><ul><ul><li>Where you are going </li></ul></ul><ul><ul><li>How you will get there </li></ul></ul>Plan, Adjust….Persevere. <ul><li>Don’t be a “puppy dog”… </li></ul><ul><li>chasing all the pretty balls. </li></ul>

17.
First Production: Controlled <ul><li>Situation </li></ul><ul><ul><li>Patent pending flood barrier product; after six years, still struggled to enter market </li></ul></ul><ul><li>Key Steps </li></ul><ul><ul><li>Market Audit and Business Plan </li></ul></ul><ul><ul><li>Investor presentation </li></ul></ul><ul><ul><li>Branding and logo </li></ul></ul><ul><ul><li>Marketing plan </li></ul></ul><ul><ul><li>Market launch </li></ul></ul><ul><ul><li>Negotiated licensing program </li></ul></ul><ul><li>Testing Concept (field evaluation) </li></ul><ul><ul><li>Contract with state of Kentucky </li></ul></ul>Developed a second type of installation unit and designed a “shorter life” product.

22.
Challenge The Opportunity <ul><li>Challenge the defined benefit opportunity. </li></ul><ul><li>Get out into the market and “talk” with your defined target audience (segment). </li></ul><ul><ul><li>Face to face is best; phone is an option </li></ul></ul><ul><ul><li>Field test </li></ul></ul><ul><ul><li>Limited geographic evaluation </li></ul></ul><ul><li>If you can’t adjust to match the need, then be ready to signal a “No Go”. </li></ul>Mindset: If the alignment is not there, you must be ready to terminate. Product Challenge Idea Alignment? Determine if the original idea matches the actual opportunity you’ve identified in your Market Audit and Business Plan. Is there truly an alignment? If not, modify or terminate. Product Features (Benefits) Consumer Segment Needs Alignment

23.
Market Audit: Challenge The Technology <ul><li>Proof of concept? Reduced to practice? </li></ul><ul><li>Better/faster/cheaper? How much? </li></ul><ul><li>Scalable? </li></ul><ul><li>When, and at what price success? </li></ul><ul><li>Patented? or patentable? </li></ul><ul><li>Single-use technology/product, or technology/product platform? </li></ul><ul><li>Enabling technologies/infrastructure required? </li></ul><ul><li>Do we have technical know-how to make it work…or do we know how to obtain it </li></ul>Mindset: If this is a unique idea, how do I protect it?

24.
Knock Yourself Off <ul><li>Situation </li></ul><ul><ul><li>Company wanted to ensure patent was broad enough </li></ul></ul><ul><li>Key Steps </li></ul><ul><ul><li>Bring in various manufacturers </li></ul></ul><ul><ul><ul><li>“ How would you copy this product?” </li></ul></ul></ul><ul><li>Testing Concept </li></ul><ul><ul><li>Use the information to build a picket fence patent defense </li></ul></ul>Competitive knock-offs will come, so prepare yourself. Be realistic, it costs lots of money to protect your idea. Build various defensive barriers along the full consumption chain.

25.
Risk <ul><li>There is risk in every venture. (No slam-dunks) </li></ul><ul><li>Assess risk factors at each stage – especially important in the feasibility review </li></ul><ul><ul><li>Define it (Assumptions) </li></ul></ul><ul><ul><li>Quantify it (L, M, H) </li></ul></ul><ul><ul><li>Manage it </li></ul></ul><ul><li>Don’t ignore it </li></ul>“ A year from now, if everything went south, what went wrong?”

26.
Testing-Address The Risks Mindset: Use concept testing to eliminate or minimize the defined risks.

27.
Wrap-Up <ul><li>A well-executed validation and assessment process provides focus for strategic value and enhances the probability for success </li></ul><ul><ul><li>And, ultimately can save time and money </li></ul></ul><ul><li>It often requires product and market recycle based on what you learn during the assessment process </li></ul><ul><li>Be disciplined and thorough – with due haste </li></ul>